AMC nears deal to avoid bankruptcy

The movie theatre chain has two competing financing offers

TRD NATIONAL /
Jul.July 08, 2020 10:52 AM
The financing deal comes after AMC theaters have been shuttered for months due to the coronavirus pandemic. (iStock)

The financing deal comes after AMC theaters have been shuttered for months due to the coronavirus pandemic. (iStock)

AMC is trying to stave off the final curtain.

The movie theater chain is close to hammering out a restructuring deal that would save it from bankruptcy, according to the Wall Street Journal.

The deal involves bondholders providing a $200 million senior loan and exchanging their unsecured claims for second-lien debt at an undisclosed discount. Meanwhile, Silver Lake Group, a private equity firm that has a seat on AMC’s board, will move into a first-lien position with its $600 million in convertible bonds.

AMC’s senior lenders, a group that includes Apollo Global Management, submitted their own counterproposal. Their deal would see the lenders fork over an additional $200 million in senior debt, in addition to the $200 million from bondholders, and block Silver Lake’s exchange into a first-lien position. But AMC is close to rejecting that proposal, according to the Journal.

The financing deal comes after AMC theaters have been shuttered for months due to the coronavirus pandemic. The chain expects to reopen most of its 600 U.S. theaters by July 30. [WSJ] — Erin Hudson


Related Articles

arrow_forward_ios
Bloomingdales at 2085 Broadway (Google Maps, iStock)

Bloomingdale’s sued for $2.5 million in missed rent

Bloomingdale’s sued for $2.5 million in missed rent
Brookfield’s Ric Clark and Simon Property Group’s David Simon (Getty)

Simon, Brookfield in talks to buy bankrupt J.C. Penney

Simon, Brookfield in talks to buy bankrupt J.C. Penney
Neiman Marcus at Hudson Yards (Getty)

Neiman Marcus committed to 50 years at Hudson Yards. It lasted 16 months.

Neiman Marcus committed to 50 years at Hudson Yards. It lasted 16 months.
Thomas Keller with Bouchon Bakery and TAK Room in Hudson Yards (Taylor Hill/FilmMagic, Bouchon Bakery by David Escalante via Thomas Keller Restaurant Group; TAK Room by John Lamparski/Getty Images for The Conservatory NYC)

Thomas Keller closing TAK Room, Bouchon Bakery at Hudson Yards

Thomas Keller closing TAK Room, Bouchon Bakery at Hudson Yards
A Stein Mart location (Getty, iStock)

Discount retailer Stein Mart files for bankruptcy, plans to close most stores

Discount retailer Stein Mart files for bankruptcy, plans to close most stores
Nat Sherman Townhouse and Altria Group CEO Billy Gifford (Google Maps, Altria)

Tobacco shop Nat Sherman to close after 90 years

Tobacco shop Nat Sherman to close after 90 years
Rendering of the project (Courtesy of 125thstreet.nyc)

$242M Harlem mixed-use project will include civil rights museum

$242M Harlem mixed-use project will include civil rights museum
Authentic Brands Group CEO Jamie Salter, David Simon and Brooks Brothers (Getty)

Simon, Authentic Brands to buy Brooks Brothers

Simon, Authentic Brands to buy Brooks Brothers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...